xmlns:atom="http://www.w3.org/2005/Atom" xmlns:atom="http://www.w3.org/2005/Atom"

PART IVU.K. PROVISIONS RELATING TO THE SCHEDULE D CHARGE

CHAPTER VIIU.K. PARTNERSHIPS AND SUCCESSIONS

[F1Partners: meaning of “contribution to the trade”U.K.

Textual Amendments

F1Ss. 118ZN, 118ZO and preceding cross-heading inserted (retrospective to 2.12.2004) by Finance Act 2005 (c. 7), s. 73(1)(5)

118ZOMeaning of “relevant loss” in section 118ZNU.K.

(1)For the purposes of section 118ZN a “relevant loss” means—

(a)a loss sustained by the individual in the relevant trade in a year of assessment the basis period for which begins on or after 2nd December 2004, or

(b)a post-announcement loss sustained by the individual in the relevant trade in a straddling year of assessment.

(2)For the purposes of this section—

(3)In the definition of “post-announcement loss” in subsection (2), the reference to the loss sustained by the individual in the relevant trade in a period is a reference to his share of any losses of the partnership arising for that period from the trade, and—

(a)the losses of the partnership arising for that period from the trade are to be computed in the same way as if the period were one for which profits and losses had to be computed for the purposes of section 849 of ITTOIA 2005, and

(b)the individual's share of the losses is to be determined according to his interest in the partnership during that period.

(4)In subsection (3) the references to “the partnership” are to the partnership as a member of which the individual carries on the relevant trade.

(5)In relation to years of assessment which are before the year 2005-06, this section has effect as if—

(a)in subsection (2) for the definition of “basis period” there were substituted—

basis period” means the basis period given by sections 60 to 63 as applied by section 111(4) and (5), except that the basis period for a year of assessment to which section 61(1) applies is to be taken to be the period beginning with the date when the individual first carried on the trade and ending with the end of the year of assessment;, and

(b)the reference in subsection (3)(a) to section 849 of ITTOIA 2005 were a reference to section 111(2) of this Act.]